Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q3 2024 Earnings Presentation
21 slides from Akzo Nobel's earnings presentation, Oct 23, 2024
Slide 1: AkzoNobel
AkzoNobel
Slide 2: Our results at a glance
AkzoNobel | Report for the third quarter 2024 2 Our results at a glance Highlights Q3 2024 (compared with Q3 2023) Summary of financial results Third quarter January-September • Organic sales up 1% driven by volume growth; revenue down 3% 2023 2024 ∆% in € millions/% 2023 2024 ∆% • Operating income
Slide 3: Financial highlights
AkzoNobel | Report for the third quarter 2024 3 Financial highlights Q3 2024 Revenue in % versus Price Organic Third quarter January-September Q3 2023 Volume /mix sales Acq./div FX Other Revenue ∆% ∆% Decorative Revenue Orga Orga Paints — 1 1 — (3) (1) (3) Organic sales up 1% due to volume growth in
Slide 4: Financial highlights
AkzoNobel | Report for the third quarter 2024 4 Financial highlights Q3 2024 Adjusted EBITDA Adjusted EBITDA* Adjusted EBITDA increased to €1,157 million (2023: €1,116 million). Third quarter January-September Adjusted EBITDA margin at 14.3% (2023: 13.7%). 2023 2024 ∆% in € millions 2023 2024 ∆% Ope
Slide 5: Decorative Paints
AkzoNobel | Report for the third quarter 2024 5 Decorative Paints Highlights Q3 2024 Excluding identified items, margin expansion mitigated operating Revenue cost inflation. • Organic sales up 1% driven by pricing; revenue down 3% Third quarter January-September • Adjusted EBITDA margin at 17.3% (20
Slide 6: Europe, Middle East and Africa; Latin America; Asia
AkzoNobel | Report for the third quarter 2024 6 Europe, Middle East and Africa Q3 organic sales up 2% and revenue up 1%. Organic sales growth was driven by positive pricing. Higher volumes in UK, Benelux and Sub-Saharan Africa, while volumes were lower in South Eastern Europe, Central Europe and Fra
Slide 7: Performance Coatings
AkzoNobel | Report for the third quarter 2024 7 Performance Coatings Highlights Q3 2024 Operating income at €529 million (2023: €543 million). Gross margin Revenue expansion was more than offset by operating cost inflation and Third quarter January-September • Organic sales up 2%, driven by higher v
Slide 8: Powder, Marine and Protective, Automotive and Specialty Coatings
AkzoNobel | Report for the third quarter 2024 8 Powder Coatings Q3 organic sales flat and revenue down 4%. Continued volume growth, especially in the industrial & consumer segment, was partly offset by market weakness in automotive. Marine and Protective Coatings Q3 organic sales up 7% and revenue u
Slide 9: Condensed consolidated financial statements
AkzoNobel | Report for the third quarter 2024 9 Condensed consolidated financial statements Condensed consolidated statement of income Condensed consolidated statement of comprehensive income Condensed consolidated balance sheet Third quarter January-September Third quarter January-September Decembe
Slide 10: Cash flows, net debt, free cash flow
AkzoNobel | Report for the third quarter 2024 10 Cash flows Consolidated statements of cash flows Free cash flow January- Third quarter Net cash from operating activities in Q3 was an inflow of €294 million September The free cash flow in Q3 2024 was lower compared with Q3 2023, (2023: inflow of €29
Slide 11: Shareholders' equity, dividend, outstanding share capital
AkzoNobel | Report for the third quarter 2024 11 Shareholders’ equity Consolidated statement of changes in equity Other (legal) Shareholders' equity amounted to €4.6 billion at September 30, Cumulative reserves and Share- Non- Subscribed Cash flow translation undistributed holders' controlling 2024,
Slide 12: Invested capital, operating working capital (trade)
AkzoNobel | Report for the third quarter 2024 12 Invested capital Operating working capital (trade) Invested capital* at September 30, 2024, totaled €8.3 billion, up €0.5 Operating working capital (trade)* was €1.9 billion at September 30, billion from year-end 2023. This increase was mainly caused
Slide 13: Notes to the condensed consolidated financial statements
AkzoNobel | Report for the third quarter 2024 13 Notes to the condensed consolidated financial statements General information These changes have been assessed for their potential impact. It was Other activities concluded that these changes do not have a material effect on Akzo Nobel N.V. is a public
Slide 14: Hyperinflation accounting, financial risk, alternative performance measures
AkzoNobel | Report for the third quarter 2024 14 Hyperinflation accounting (Türkiye and Financial risk management Alternative performance measures Argentina) The consolidated financial statements for the year ended In presenting and discussing AkzoNobel’s operating results, For Türkiye and Argentina
Slide 15: Adjusted EBITDA, adjusted EBITDA margin, free cash flow
AkzoNobel | Report for the third quarter 2024 15 Adjusted EBITDA Adjusted EBITDA margin Free cash flow Adjusted EBITDA is operating income excluding depreciation, Adjusted EBITDA margin is an operational profit margin. Adjusted AkzoNobel reports on free cash flow as management believes it to amortiz
Slide 16: Return on investment, adjusted EPS, invested capital
AkzoNobel | Report for the third quarter 2024 16 directly comparable IFRS measure is available in the condensed Management uses average invested capital to assess the total EBITDA consolidated financial statements. amount of capital invested over the last 12 months. October 2022 - September 2023/Oct
Slide 17: Quarterly statistics
AkzoNobel | Report for the third quarter 2024 17 Quarterly statistics 2023 2024 Q1 Q2 Q3 Q4 Full-year in € millions Q1 Q2 Q3 Year-to-date Revenue 1,046 1,147 1,121 986 4,300 Decorative Paints 1,056 1,139 1,089 3,284 1,611 1,594 1,620 1,543 6,368 Performance Coatings 1,584 1,645 1,579 4,808 — — — — —
Slide 18: Quarterly statistics
AkzoNobel | Report for the third quarter 2024 18 Quarterly statistics 2023 2024 Q1 Q2 Q3 Q4 Full-year in € millions Q1 Q2 Q3 Year-to-date Operating income 94 151 156 99 500 Decorative Paints 116 121 127 364 130 168 245 155 698 Performance Coatings 176 182 171 529 (42) (40) (47) (40) (169) Other acti
Slide 19: Quarterly statistics
AkzoNobel | Report for the third quarter 2024 19 Quarterly statistics 2023 2024 Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Year-to-date Quarterly net income analysis (in € millions) 7 5 8 7 27 Results from associates 7 5 7 19 151 239 294 100 784 Profit before tax 252 244 247 743 (45) (106) (96) (49) (296) Incom
Slide 20: Glossary
AkzoNobel | Report for the third quarter 2024 20 Glossary and tax cases, and hyperinflation accounting adjustments for SG&A costs include selling and distribution expenses, general and inventory positions that exceed normal operational levels. administrative expenses and research, development and in
Slide 21: Akzo Nobel N.V. contact and financial calendar
AkzoNobel | Report for the third quarter 2024 21 Akzo Nobel N.V. AkzoNobel Global Communications Financial calendar T +31 88 969 7833 Christian Neefestraat 2 E media.relations@akzonobel.com Ex-dividend date of 2024 interim dividend October 28, 2024 P.O. Box 75730 Record date of 2024 interim dividend